E-Commerce in East Africa Free Essays

Table of Contents Definition and background2 Reasons for growth of e-commerce in East Africa. 4 Influence of e-commerce on trading practices in East Africa. 5 Types of e-commerce8 Challenges facing the growth of e-commerce in East Africa. We will write a custom essay sample on E-Commerce in East Africa or any similar topic only for you Order Now 9 1. Poor infrastructure9 Computer illiteracy9 Lack of proper regulation9 Inadequate capital10 Inadequate personnel10 Conclusion10 References11 Definition and background E-commerce refers to business conducted through the use of computers, telephones, fax machines, barcode readers, credit cards, automated teller machines (ATM) or other electronic appliances (whether or not using the internet) without the exchange of paper-based documents. It includes activities such as procurement, order entry, transaction processing, payment, authentication and non-repudiation, inventory control, order fulfillment, and customer support. When a buyer pays with a bank card swiped through a magnetic-stripe-reader, he or she is participating in e-commerce. | It mainly involves the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. Originally, electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK. Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the Internet to emerge. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between â€Å"conventional† and â€Å"electronic† commerce will become increasingly blurred as more and more businesses move sections of their operations onto the Internet. Business to Business or B2B refers to electronic commerce between businesses rather than between a business and a consumer. B2B businesses often deal with hundreds or even thousands of other businesses, either as customers or suppliers. Carrying out these transactions electronically provides vast competitive advantages over traditional methods. When implemented properly, ecommerce is often faster, cheaper and more convenient than the traditional methods of bartering goods and services. Electronic transactions have been around for quite some time in the form of Electronic Data Interchange or EDI. EDI requires each supplier and customer to set up a dedicated data link (between them), where ecommerce provides a cost-effective method for companies to set up multiple, and ad-hoc links. Electronic commerce has also led to the development of electronic marketplaces where suppliers and potential customers are brought together to conduct mutually beneficial trade. Just like the rest of the world, East Africa hasn’t been left behind in adopting e-commerce as a way of doing business. Many individuals, corporations and even governments have resolved to using e-commerce in consummating their business transactions, albeit on a smaller margin as compared to western countries or the more developed world economies. Countries in east Africa, that is Kenya, Uganda and Tanzania have all been taking steps in the recent past to ensure that trade among them grows as a way of boosting the economic growth of these countries. One of the steps has clearly been adopting the use of e-commerce. Relevant infrastructure has been or is being established to back up this adoption. Since e-commerce ideally is all about the internet, most of the infrastructure I am referring to involves it in way or another. Most notably has been the laying of the fiber optic cable from the coast of Kenya towards the inland that allows for high speed internet access. Reasons for growth of e-commerce in East Africa. The rapid growth of e-commerce since 1995 is due to the unique features of the Internet and the Web as a commercial medium: * Ubiquity: Internet/Web technology is everywhere, at work, home, and elsewhere, and anytime, providing a ubiquitous market space, a marketplace removed from a temporal and geographical location. * Global reach: The technology reaches across national boundaries. Universal standards: There is one set of Internet technology standards, which greatly lower market entry costs (the costs to bring goods to market) and reduce search costs (the effort to find products) for the consumer. * Richness: Information richness refers to the complexity and content of a message. Internet technology allows for rich video, audio, and text messages to be delivered to large numbers of people. * Interactivity: The technology works through interaction with the user. * Information density: Information density is the total amount and quality of information available to all market participants. Internet technology reduces information costs and raises quality of information, enabling price transparency (the ease for consumers of finding a variety of prices) and cost transparency (the ability of consumers to determine the actual costs of products). Information density allows merchants to engage in price discrimination (selling goods to targeted groups at different prices). * Personalization/customization: E-commerce technologies permit personalization (targeting personal messages to consumers) and customization (changing a product or service based on consumer preference or history. Influence of e-commerce on trading practices in East Africa. As it has already been established, e-commerce is being used, even though not so widely in East Africa. The firms or organizations that have decided to employ e-commerce are benefiting from it in the following ways: 1. Exploitation of New Business Broadly speaking, electronic commerce emphasizes the generation and exploitation of new . business opportunities and to use popular phrases: â€Å"generate business value† or â€Å"do more with less† Safaricom, mobile service provider has the m-pesa service that captured so many customers and helped many people establish new businesses. There is also the m-kesho service which is a joint venture between Safaricom and Equity Bank that has enabled many small business owners and individuals to access banking services. 2. Enabling the Customers Electronic Commerce is enabling the customer to have an increasing say in what products are made, how products are made and how services are delivered (movement from a slow order fulfillment process with little understanding of what is taking place inside the firm, to a faster and rt1ore open process with customers having greater control. . Improvement of Business Transaction Electronic Commerce endeavors to improve the execution of business transaction over various networks. 4. Effective Performance It leads to more effective performance i. e. better quality, greater customer satisfaction and better corporate decision making. 5. Greater Economic Efficiency We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time intera ction) with the help of electronic commerce. 6. Execution of Information It enables the execution of information-laden transactions between two ore more parties using inter connected networks. These networks can be a combination of ‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless. Information based transactions are creating new ways of doing business and even new types of business. 7. Incorporating Transaction Electronic Commerce also inco11’orates transaction management, which organizes, routes, processes and tracks transactions. It also includes consumers making electronic payments and funds transfers. 8. Increasing of Revenue Firm use technology to either lower operating costs or increase revenue. Electronic Commerce has the Potential to increase revenue by creating new markets for old products, creating new information-based products, and establishing new service delivery channels to better serve and interact with customers. The transaction management aspect of electronic commerce can also enable firms to reduce operating costs by enabling better coordination in the sales, production and distribution processes and to consolidate operations arid reduce overhead. . Reduction of Friction Electronic Commerce research and its associated implementations is to reduce the â€Å"friction† in on line transactions frictions is often described in economics as transaction cost. It can arise from inefficient market structures and inefficient combinations of the technological activities required to make a transaction. Ultimately, the reduction of friction in online commerce will enable smoo ther transaction between buyers, intermediaries and sellers. 10. Facilitating of Network Form Electronic Commerce is also impacting business . o business interactions. It facilitates the network form of organization where small flexible firms rely on other partner, companies for component supplies and product distribution to meet changing customer demand more effectively. Hence, an end to end relationship management solution is a desirable goal that is needed to manage the chain of networks linking customers, workers, suppliers, distributors and even competitors. The management of â€Å"online transactions† in the supply chain assumes a central roll. 11. Facilitating for Organizational Model It is facilitating an organizational model that is fundamentally different from the past. It is a control organization to the information based organization. The emerging forms of techno-organizational structure involve changes in managerial responsibilities, communication and information flows and work group structure. Types of e-commerce Business-to-business (B2B) Business that sells products or provides services to other businesses. Business-to-consumer (B2C) Business that sells products or provides services to end-user consumers. Consumer-to-consumer (C2C) Consumers sell directly to other consumers. Business-to-government (B2G) Government buys or provides goods, services or information to/from businesses or individual citizens. Business-to-employee (B2E) Information and services made available to employees online. Mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environment. Collaborative commerce (c-commerce) Individuals or groups communicate or collaborate online. Challenges facing the growth of e-commerce in East Africa. . Poor infrastructure. Many consumers and businesses in the east African region are not able to access internet services due to poor access of the internet and online services in general. This makes it difficult for them to transact through the internet and hence e-commerce has not been able to grow at a reasonable rate. This poor internet access can be attributed to the poor infrastructure currently being used in the region. Modern high performan ce network equipment has to be installed for e-commerce to grow as expected. Computer illiteracy Many individuals in the east African region do not have access to computers and those who might have access do not know how to use them. This has largely affected the growth of e-commerce since computers are an integral part of the online business. This is why many online transactions in the region are usually done by way of mobile phones which again aren’t that accessible to the common citizenry. Lack of proper regulation The internet is largely unregulated. Many businesses and individuals lose their money to unscrupulous and fraudulent business people who take advantage of the lack of proper rules and regulations to play foul. The situation is even worse in east Africa and many businesses are losing money hindering their expansion and the industry in general. Inadequate capital Investment in the equipment and manpower required to run online business is very expensive and most firms cannot afford it. Computers, database managers, hard drives, software and software managers are all needed to keep on online system running. Administration of such systems is also very expensive and it needs regular updating and upgrading. Inadequate personnel Many firms in east Africa do not have the expertise needed to run these e-commerce systems. The curriculum in schools and higher learning institutions do not offer adequate skills. Expertise has to be imported from the rest of the world to complement the little that we have. This makes it so expensive to run online businesses. Conclusion Even though it has taken so long for e-commerce to be integrated into the business world in east Africa, it is finally here and it is being appreciated by those who are willing to adopt it. The governments of the countries in the region are doing a lot of investment in the required infrastructure to see to it that internet is accessed widely and cheaply. Investors from other countries have also realized that this east African region holds a lot of potential and are willing to invest their money to boost online trading establishments. There are still many challenges that need to be surmounted and e-commerce has gotten to its feet fully, but with the measures being taken by the governments, the private sector and many other stakeholders in the information technology sector, it is only a matter of time before e-commerce becomes fully operative in the region. This will present a lot of opportunities that will help improve the standards of living in the region. References * www. ecommerce-land. com * www. ihub. co. ke * The Economics of M-Pesa, William Jack and Tavneet Suri, 2nd Edition, August 2010 * www. kcbbankgroup. com * www. imbank. com * The Smart Company, The Daily Nation, 17th July 2012 page 8-9 How to cite E-Commerce in East Africa, Papers

Analyse The Strategic Management Of Hilton Worldwide - Samples

Question: Discuss about the Strategic Management Of Hilton Worldwide. Answer: Introduction Strategy management defines the major targets and initiatives which are formulated and implemented by a corporations top-levelmanagement on behalf of shareholders. These initiatives and goals are based on assessment and consideration of the internal and external environments in which the company operates. This report will analyse thestrategic management of Hilton Worldwide by analysing various internal, external, industrial, corporate, and business factors. Further, the report will include SWOT, PEST, and 5 Forces analysis of the company and discuss its business and corporate level strategy to evaluate its strategic direction. Overview of the Company Hilton Hotels Resorts is an international full-service hotel and resort chain; Conrad Hilton founded it in 1919. The company operates in the hospitality industry, and it is one of the largest hotel chains in the world with more than 570 hotels. The services of Hilton hotels target both businesses and leisure travelers because they are situated near airports, major cities and famous holiday destinations throughout the world. As per Hilton annual report, it has revenue of US$11.6 billion in 2016 (Hilton, 2016). Market Share In domestic markets, i.e., United States, the company has a market share of 9 percent, and in international markets, it has 5 percent market share. In the Middle East, it has 3 percent market share, whereas in Europe and Asia Pacific region it has 1 percent market share (Cederholm, 2014). Scope The company operates in 14 industries including hotel and restaurant, hospitality sector, pub, school meals, gambling, nightclubs, catering for parties, travel services, food contract, conferences and many others (Hilton, 2016). Hilton provides various amenities and services to its guests in order to improve their experience such as bed breakfast, pick up facility, instant bookings, advance purchases, free Wi-Fi, late checkouts, breakfast buffet, discounted rates for military families, family fun packages, membership savings and many others. Target Markets Geographic Segmentation mainly, the company focuses on domestic preferences and location. Demographic Segmentation the target demographic of the corporation include middle or senior aged individual professionals who belong to an upper social class and earn a high level of income and who pursue luxury lifestyle. Psychographic Segmentation it includes ambitious peoples who prefer to express their accomplishments and high status by staying in a 5-star hotel and paying for premium rooms and services. Benefits Segmentations the company primarily benefit its guest by providing them high status in society, sense of achievement and luxury facilities. Mission The corporations mission is to become the most hospitable organisation in the world by providing warm experience to guests, significant opportunities to employees, maximising shareholders value and positively influencing the society. Vision The companys vision is to fill the world with the goodness of hospitality by providing each guest an exceptional experience every time in each hotel. Industry Analysis The Porters five forces is a framework for analysing five different forces that influence the competition in the industry; Michael Porter developed it. Hilton Worldwide operates in the hospitality industry; both consolidation and fragmentation co-exist in the hospitality industry because both of them pose opportunities and threat for the businesses (EHL, 2017). For example, in the United States, the industry has already consolidated and benefited from it, whereas, in European countries, hotels remain to be fragmented. As per the research of Rael (2016), profitability potential in the hospitality industry is high as long as companies are able to increase occupancies. The hotel corporations can provide a high level of services to boost occupancies which resulted in enhancing profitability ratio; Hilton hotels are already in premium services markets which is beneficial for its profitability. Rivalry among existing firms The competition between premium hotel industries is aggressive; the competitors of Hilton include Radisson Blu, Marriott, Sheraton, Westin, Accor SA, Hyatt Hotels and many others. Hilton worldwide spend heavily on service infrastructure, therefore, it is enjoying a growth of 106.67 percent while other competitors are growing at 61.98 percent (Borttarelli Research, 2016). Bargaining power of suppliers Hilton Worldwide has more than 4000 suppliers globally, and their bargaining power is low; Hilton order in paramount value, therefore, supplier did not switch or increases cost (Hilton, 2016). Hilton also implemented a Supplier Diversity Program to promote and develop socially diverse suppliers; this program provides them addition competitive ground in between diverse suppliers. Threat of substitute products or services In the hotel industry, the risk of substitute services is not significant. The substitute of hotel services includes peoples living in friends or family homes or renting apartments for small periods. Modern technology has improved the process of hotel booking by providing online services, therefore, the threat of substitute is low. Bargaining power of Buyers The negotiating power of buyers is high in hotel industry because it is easier for guests to access information of multiple hotels and selects the most suitable hotel based on their preference. The guests are price sensitive, and they use online data to compare price of different hotels, and the cost of switching is considerably low. Threat of New Entrants The initial investment in the hotel industry is considerably high which create a barrier for new entrants, but many of barriers have been removed due to the popularity of internet-based services and effective communication channels. A key barrier is differentiation; the firms which have effectively differential its value and services based on location, amenities, and services is a potential risk for new entrants. Hilton hotels have a strong brand presence, and it is popular among high-income individuals, therefore, the threat of new entry is low (Porter, 2008). Growth Pattern Hilton hotels have been profitable in previous five years; the company is constantly expanding its business in new areas along with a number of employees. The number of Hilton hotels has grown from 3861 to 4856 in from 2012 to 2016; the company is expanding its business in BRICs markets, i.e., Brazil, Russia, India, and China. The revenue of Hilton hotels has increased substantially in previous five years; the initiatives of company such as Hilton honours program, free Wi-Fi, discount rates for military family, breakfast in bed, online booking and other premium services are attracting a large number of guests to the company. In 2013, Hilton launched a new dining concept called Herb N Kitchen throughout its branched worldwide. In 2016, Hilton marked its presence in 100 countries by opening Hilton NDjamena in Chad (Hilton, 2017). External Analysis PEST analysis is a strategic analytical tool that analyses the effect of political, economic, social and technological factors on business and evaluates its long-term growth prospects. Political Factors Hilton welcomes tourists and business travelers in its hotels and threats such as terrorism and significant political change adversely affect its business. Terrorists act in London on 7th July 2015 and few areas in Northern Ireland has reduces the number of travelers. The decision of UK to exit EU (Brixit) has also influenced the business of Hilton hotels (Ozturen, Sumaneeva, Gashenenkov and Meredova, 2017). Economic Factors The domestic and international macroeconomic factors and events affect the business of Hilton hotels, for example, in 2012, Olympics were scheduled in UK and hotels were fully occupied for the entire period, but otherwise, it is difficult for premium hotels to attract guests during the financial crisis (Wu and Liang, 2009). Social Factors A variety of social factors influences the business of Hilton hotels such as growing population, customers preferences, family preferences, demographic variables and social media popularity. For example, people preference is shifting towards traveling due to popularity of traveling websites, blogs, and social media pages. New customers are emerging in countries such as India and China; the family preferences of people increase or decrease the number of consumers staying in the hotels (Sigala, Christou and Gretzel, 2012). Technological Factors The rapid growth in technological infrastructure has a significant influence over Hilton hotels; the companies operating in the hospitality industry have to effective use energy sources and provide their service through online platforms (Buhalis and Law, 2008). Further, the simplicity in online hotel bookings has increased the number of guest for Hilton hotels. Internal Analysis: Core Competencies The core competencies of Hilton hotels include customers facilities, strong brand image, dedicated and skilled staff, gambling license, customer support, positive culture, and talent acquisition because it is difficult for competitors to duplicate such practices since it requires a high level of investment and expertise. Further, the company provides its services in more than 80 countries and situated near most of the popular destinations which make them the obvious choice for wealthy travellers. The online rating of Hilton on hotel booking websites and customers reviews prove that the company delivers their promise, and they are one of the best when it comes to premium services. Yu (2017) conducted research for Forbes that provided that Hilton and Marriot hotels are two of the highest earning hotel corporations, and they have beaten all their competition. Value Chain The value chain analysis assesses information regarding business activities of the Hilton hotels that provide them a competitive advantage and creates value. Hilton hotels have successfully implemented an efficient value chain that adds value to its operations and sustain its future growth. The business activities are divided into two sections: primary and support. Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Services Support Activities The support activities of Hilton hotels are divided into four sections: Firm Infrastructure: Hilton is an international hotel chain, and they are known for excellent hotel infrastructure and premium services. The company focuses on critical factors such as quality, cleanliness, atmosphere, facilities, and maintenance across all its branches. Especially, Hilton hotel focuses on cleaning rooms and common area and providing comfort to its guests in a professional manner. These facilities improve guests experience and add value to Hiltons value chain. Human Resource Management: To deliver high-quality services, Hilton provide training to its management and ground level staff to teach them how to provide services guests professionally. The HR department focuses on hiring right attitude employees who possess required skills and knowledge regarding hospitality industry. Hilton has insisted two programs for its employees, on the job and off the job training; each employee learn necessary in these two training programs. The company also focus on motivating its workers by providing monetary or non-monetary rewards based on their performance. Furthermore, company provides shares to its employees at discounted rates; employees who are working for more than two years can sell these shares in the stock By selecting qualified employees, Hilton adds value to its operations and sustains future growth. Technology Development: Hilton provides online services to improve customer satisfaction and provide faster customer support facilities. The technology department has developed online website and mobile applications that enable customers to check hotel prices and book them through the application easily. The Hilton honours application provides special discounts to guests that visit Hilton more than one times; it encourages customers to choose Hilton for every vacation or office meeting. Procurement: The primary objective of Hilton is to provide a premium level of services to its customers, therefore, management seeks supplier that can provide high-quality products to the company and also fulfill its requirements. The suppliers of Hilton are required to be friendly and must not conduct any unethical activities that can affect company or guests, therefore, management carefully select suppliers. Primary Activities Inbound logistics: The inbound logistics and supply chain management allow smooth operation in Hilton hotels by directly trade with suppliers and negotiate their prices. The distributors also manage activities relating to delivery and warehousing that reducing organisational risks (Hilton, 2016). Operations: Hilton hotels operations are divided into three segments: Ownership division: It includes 146 hotels that consist of 59,463 rooms that are owned and rented by Hilton. Franchise segment: It consists of 4,419 hotels that have 691,887 rooms that are licensed and managed by Hilton Worldwide. The company franchised 3,875 hotels that consist of 533,039 rooms to third parties. Timeshare section: It consists of 45 properties comprising 7,152 units; this division engaged in selling and marketing activities. Outbound Logistics: It refers to actions relating to delivery of finished products and services; Hilton provide high-quality services to its guest as advertise by the company and delivery good with secure transportation that provide them a competitive Marketing and Sales: This section includes marketing and sales department that focuses on promotion and communication of its services to target customers. The Hilton honour program has become marketing success for the company which encourages customers to choose Hilton every time they travel. Service: This stage includes various facilities provided by Hilton to its customers, such as customers support, complaints, training, sale service and others. The complaints lodged by the customers handle at the highest priority by the company. SWOT Analysis Strengths Weaknesses Strong brand recognition and positive market reputation Effective customer retention schemes, such as Hilton Honours Digital innovations to improve customers hotel experience, such as hassle-free online booking, mobile application Strong property portfolio, i.e., 570 properties in six continents Strong and effective leadership, i.e., Christopher Nassetta Market expertise, i.e., been in industry for 98 years Overdependence on the United States market, i.e., only 3 percent market share in European and Asia Pacific counties and 5 percent share in global markets Adverse influence over business and operations due to government regulation, such as Brexit High level of debts Lack of flexibility in operations and management due to its large size Opportunities Threats High potential for growth in emerging markets, i.e., BRIC nations Formation of strategic alliance Digitalisation of operations and use of technology in improving customers experience, for example, use of mobile application as ticket, identification and room key Increasing operations in mid-level budget hotel industry Investment in research and development to understand guests requirements Entry of international and local competitors in hotel industry Premium price services that only attracts wealthy guests Stagnated growth Political instability and terrorist threats, for example, terrorist attack on 7th July 2015 in Londo Opportunities and Threat on the Horizon Opportunities Threats Popularity of smartphones can assist Hilton in providing hassle-free hotel experience, for example, lack of requirement for physical identification and using NFC in phones to use it as a room key Offering mid-level budget room in emerging markets, such as BRIC nations Risk of terrorist attacks and mass shooting reduces the number of tourists, for example, Hilton is over-dependent on US markets, and increasing rate of mass shooting reduces the number of travelers The popularity of alternative services, such as Airbnb, creates a threat for the hotel industry. For example, Airbnb offers low prices and new experience which attracts a large number of customers On the Horizon Currently, Hilton Worldwide is taking full advantage of modern technology to enhance its guests experience, for example, customers can browse, select, pay, and cancel their order through Hiltons mobile application. Recently the threat of Airbnb has grown in hotel industry due to its low prices. The hotel industry is using legal route to defeat this threat, many hotels, including Hilton, are filling lawsuits against the company since many of its offers are against the local housing regulations (Coldwell, 2014). Business Level Strategy Competitive advantage The company pays close attention to details which improve its customer experience and provide them a competitive Hilton hotels are available in travel destinations throughout the world, and they are equipped with internet, self-service, premium services and others. Providing high-speed internet and easy online services allow the company to gain competitive advantage. Marketing Strategy Hilton hotels focus on connecting at an emotional level with its customers and provide them premium traveling experience. The company started a campaign called Travel takes you places which resulted in boosting its sales. The corporation also uses many other advertising campaigns such as Tomorrows a big day and Hilton Honours to attract customers. Corporate Level Strategy Hilton hotels have adopted a Value-adding corporate-level strategy that focuses on increasing number of customers by adding value to companys operations. The company is using its competitive advantages to diversify its business; it is already listed under full-service brand, focused service brand, timeshare brand and luxury hotel brand (Cederholm, 2014). The corporation is opening new restaurants to provide premium dining experiences to its guests. Hilton Worldwide is focusing on opening new hotels in emerging markets to increases its market share in international markets (Livemint, 2017). The use of the latest technology and guests specific facilities allow Hilton to maintain its position of competitive advantage over time. The company is equipped with the professional legal team and effective management staff that formulate strategic policies to ensure the company is prepared for future risks. For example, Airbnb has been a significant threat for hotel industry which has gained 10 percent of the market; therefore, Hilton along with other premium hotel chains is filing legal suits against the company because it violates various local housing laws. The team of professionals adds value to Hilton hotels and enable them to face future threats. Strategic Direction Summary According to Christopher J. Nassetta, CEO of Hilton Hotels, the companys strategies are focused on facing future leadership challenges and expanding its market share in the hospitality industry (Office, 2012). The strategies of the corporation have been focused on transforming and achieving its organisational objectives. As per Nassetta, future strategies are directing towards accomplishing corporate goals and expanding Hiltons global market share in the hospitality industry (Office, 2012). Nassetta stated that the company is simplifying its value statements because customers find it difficult to understand its values; the corporation is creating intense alignment around its value, mission, vision and key strategic priorities that can be achieved by establishing right corporate culture. The direction of Hilton corporate strategies is towards becoming worlds number one premium service hotel and providing the best possible services to its guests in order to improve their traveling expe rience. Future Strategy Recommendations The core competencies of Hilton Worldwide, such as skilled staff, premium services, availability near popular destinations and effective value chain, allow it to expand its business globally. The future strategy of Hilton should include following: Expansion in BRIC market Mid-level budget offers Digitalisation of operations The BRIC markets provide significant opportunities to Hilton Worldwide because they are emerging market in which Hilton can capture a large number of market share. The governments of BRIC markets also initiate various programs to promote international companies to expand their business in the country because it increases employment, economy and national income. Hilton can collect tax incentives and other grants to expand their business and increase their market share easily. Hilton should start offering mid-level budget rooms to expand its customer base. Peoples perspective has changed, and they prefer quality services at an affordable price; in BRIC markets most of the customers are belonged to medium income group, and mid-level budget offers will increase the number of Hiltons guests. The threat of Airbnb has also grown for Hilton because they provide affordable prices; therefore, mid-level budget rooms will assist Hilton in competing with Airbnb. Using technology in operations imp roves their reliability and usability, similarly, Hilton can improve its service by using the latest technology. The company should improve its mobile application by adding new features for refining the guests experience. The future strategy of Hilton should include these points as it will assist them expanding their market share and sustain future growth. Conclusion From the above observations, it can be concluded that Hilton Worldwide is an international hotel chain that provides high-quality services to its guests in order to improve their traveling experience. The companys primary strengths are its strong brand image, market expertise, digitalisation of processes and strong value chain. Various external factors affect the business of Hilton such as political policies, legal issues, environmental factors and others. The weaknesses of Hilton hotels include changing customers perspective, overdependence on US market, high level of debts and increasing competition. To face these challenges, the company is focusing on creating strategic planning with the help of industry professionals to maintain its competitive advantage. Strategies of the company are directing towards simplifying its values and accomplishing organisational objectives by building policies based on its strengths. References Amigobulls., 2017. Hilton Worldwide Revenue, Profits - HLT Annual Income Statement. [Online] Amigobulls. Available at: https://amigobulls.com/stocks/HLT/income-statement/annual [Accessed on 23/11/1017] Borrarelli Research., 2016. Hilton is Getting Punished for 106% Growth. [Online] Available at: https://www.bottarelliresearch.com/free/charts/2016/07/27/hilton-getting-punished-106-growth [Accessed on 23/11/1017] Buhalis, D. and Law, R., 2008. Progress in information technology and tourism management: 20 years on and 10 years after the InternetThe state of eTourism research.Tourism management,29(4), pp.609-623. Cederholm, T., 2014. Hiltons diversified portfolio with 11 world-class brands. [Online] Market Realist. Available at: https://marketrealist.com/2014/10/hiltons-diversified-portfolio-11-world-class-brands/ [Accessed on 23/11/1017] Cederholm, T., 2014. Overview: Hilton Worldwide Holdings Inc. [Online] Market Realist. Available at: https://beta.marketrealist.com/2014/10/overview-of-hilton-worldwide-holdings-inc [Accessed on 23/11/1017] CGMA., 2013. Porters Five Forces of Competitive Position Analysis. [Online] CGMA. Available at: https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html [Accessed on 23/11/1017] Coldwell, W., 2014. Airbnb's legal troubles: what are the issues?. [Online] The Guardian. Available at: https://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-issues [Accessed on 23/11/1017] EHL., 2017. Will globalization fragment or consolidate the hospitality industry?. [Online] EHL. Available at: https://blog.ehl.edu/lausanne-report-shaping-the-future-of-hospitality-1 [Accessed on 23/11/1017] Hilton., 2016. A History of Firsts. [Online] Hilton. Available at: https://www3.hilton.com/en/about/hilton/history/index.html [Accessed on 23/11/1017] Hilton., 2016. Annual Report. [Online] Hilton. Available at: https://www.corporatereport.com/hilton/2016/ar/_pdf/Hilton_2016_AR.pdf [Accessed on 23/11/1017] Borrarelli Research. Hilton., 2016. HILTON WORLDWIDE EXPANDS TO 100 COUNTRIES AND TERRITORIES, CAPPING RECORD YEAR OF GROWTH. [Online] Hilton. Available at: https://newsroom.hilton.com/index.cfm/news/hilton-worldwide-expands-to-100-countries-and-territories-capping-record-year-of-growth [Accessed on 23/11/1017] Livemint., 2017. Hilton to open 18 new hotels in India by 2021. [Online] Livemint. Available at: https://www.livemint.com/Companies/8eiLg3M8qtp2NaU4Ofy76L/Hilton-to-open-18-new-hotels-in-India-by-2021.html [Accessed on 23/11/1017] Office, C., 2012. On a Busy Road, a Company Needs Guardrails. [Online] Forbes. Available at: https://www.nytimes.com/2012/10/14/business/christopher-nassetta-of-hilton-on-focusing-its-values.html [Accessed on 23/11/1017] ztren, A., Sumaneeva, K., Gashenenkov, M. and Meredova, M., 2017. Potential Effects of Disruptive Political Trends in International Tourism Market.International Journal of Multicultural and Multireligious Understanding,4(2), pp.24-29. Porter, M.E., 2008. The five competitive forces that shape strategy.Harvard business review,86(1), pp.25-40. Rael, J., 2016. Research: Maximizing hotel profitability potential. [Online] Hotel News Now. Available at: https://www.hotelnewsnow.com/Articles/88558/Research-Maximizing-hotel-profitability-potential [Accessed on 23/11/1017] Sigala, M., Christou, E. and Gretzel, U. eds., 2012.Social media in travel, tourism and hospitality: Theory, practice and cases. Ashgate Publishing, Ltd.. Statista., 2017. Number of Hilton Worldwide hotels from 2009 to 2016. [Online] Statista. Available at: https://www.statista.com/statistics/247284/number-of-hilton-worldwide-hotels/ [Accessed on 23/11/1017] Statista., 2017. Revenue of Hilton Worldwide from 2009 to 2016 (in billion U.S. dollars). [Online] Statista. Available at: https://www.statista.com/statistics/297760/revenue-of-hilton-worldwide/ [Accessed on 23/11/1017] Wu, C. and Liang, R.D., 2009. Effect of experiential value on customer satisfaction with service encounters in luxury-hotel restaurants.International Journal of Hospitality Management,28(4), pp.586-593. Yu, H., 2017. Marriott And Hilton Stay Ahead Of The Sharing Economy, Proving That Airbnb Is Not The Uber Of Hotels. [Online] Forbes. Available at: https://www.forbes.com/sites/howardhyu/2017/02/16/marriott-and-hilton-stay-ahead-of-the-sharing-economy-proving-that-airbnb-is-not-the-uber-of-hotels/#60e278e076b3 [Accessed on 23/11/1017]

Research and Decision Making for Business

Question: Discuss about the Research and Decision Making for Business. Answer: Introduction The purpose of the research work has been clearly stated in the introduction part of the research work. The introduction is one of the most important parts of the research work, which enable the readers to get the central idea about the research. The authors have talked about the prior limitations of the research works and have stated the purpose clearly that the present research work will mainly look into those limitations to complete the research work. The authors have related the study to the macroeconomic changes in the market. The authors have pointed out that the macroeconomic changes have resulted in the job loss among the labors in the United States. Thus, it can be said that the authors have taken care of all the factors that result in the job loss and can affect the health of the workers who are working in the country. Statement of the problem The statement of the problem is clearly stated in the introduction part of the research work. The limitations of the prior research have been stated well in the introduction part. The limitation that the authors have identified in the prior research works have made the readers aware of the problems of the cross-sectional data and the longitudinal data. The cross sectional data is mainly based on the population of an area or other firms, association or region. On the other hand, longitudinal data is about research, which is based on a certain period. However, the authors have revealed that those longitudinal data cannot be applied for the workers of all the categories in the United States. Thus, the problems of the job insecurity and the problems that have been identified in the previous research works have been stated properly in the research work. Purpose of the study It would have been better if the authors have mentioned the problem statement, the purpose of the study separately. The readers could have easily understood the different sections of the research works and the research work would have been more easier for the readers to understand. Research question The main setback of the research work is that there is neither any clearly stated research questions, research objectives and the aim of the research work. Research questions not only help the readers but also help the researcher to keep track of the questions that need to be answered in the research work. Thus, research questions are an important part of the research work that the authors have overlooked. However, the authors could make use of the hypotheses to keep a check on the flow of the research and the areas that need to be researched to complete the work. Theoretical framework The authors have not used any theoretical framework for the research work. The theoretical framework is necessary for a research work as it present to the readers the entire structure of the literature review and supports the secondary research work of the researchers. If a theoretical framework could be presented in the following research work, then the framework could have been repented in the following manner: Figure 1: Theoretical framework for the research (Source: Created by author) The authors mainly will look into the problems of job insecurity in the United States. However, before proceeding with the research work, they have looked into the prior limitations of other works. The perceived job insecurity and the meanings and measurements of the same is studied. Finally, the effect of the job insecurity has been presented in the research. Literature review The authors have not mentioned separately about the literature review. The authors should have used a different heading, which would have made the research work clearer to the readers. For any research work, it is important to use the references that are not more than five years old. The research works are written in the year, 2009. As a result, the authors should have used references from the year 2004 until the year, 2009. However, the authors have used references that are dated 1994, 1995 and older than these years. Recent data would have made the readers aware of recent works that have been done by the authors. On the other hand, the authors have taken a long period to study the changes in the perceived job insecurity and the health of the workers. As a result, the authors have the literatures that have written ten years ago. However, they could have incorporated equal amount of literature from the history as well as from the present to keep a balance in the literature review of the research work. Methods The authors applied the longitudinal data collection method to write the research work. In addition to this, they have not forgotten to use the cross sectional data collection as they have collected the data from Americans Changing Lives (ACL) and Midlife in the United States (MIDUS). The authors have collected the first set of before the perception of the job security and they have further collected the data by following up with the data collection prices. The authors have taken into consideration a long range of time to collect the data. They have started with three years and have collected the data over a period of ten years. The range has helped the authors to look into the variation that might have happened in the entire range. To get a 3600 idea about the relations between the job security and the health of the workers the authors have taken the help of three hypotheses. The sample size and the types of the participants who took part in the research work are appropriate for the research works. The authors have taken the feedback of the participants who are over 25 years and have taken into consideration the participants who are aged 60 years. The range is appropriate for the study because people get into the jobs in the age of 25 years. The problem of job security and unemployment starts when an individual reached the age group of 25 years. the effect on the health can be seen at the later age. Hence, the 60 years is perfect for the study to get an idea on the effect on health. The data collection instrument like the questionnaire is significant for the present research work. The authors have collected the data by conducting surveys, face-to-face interviews and over sampling. With the help of the questionnaires, the authors have been able to get the exact data needed for the research. They were able to further analyze the data with the help of Stata with the help of the questionnaire. The reliability and the validity of the research have not been mentione d in the research work. However, it can be said that the research is both reliable and valid. It can be said reliable because the authors taken into consideration primary research and hence they have been able to retrieve the real data. It is valid because they have taken into consideration a study that has been done for a long range of period. Thus, the result of the research can be applicable for any kind of data. Analysis The authors have taken into consideration a huge range of data and that has been collected for a long range of time. The authors have used the Stata software version 10.0 SE. The authors have used the ordinary least squares (OLS) to make the multivariate analyses. The quantitative data analysis should be used when the authors are taking into consideration a huge set of data. The close-ended questions have been helpful for the authors to analyze the data and reach the proper conclusion of the research work. The analytical approach of the authors is suitable for the present research design, which is mainly based on the primary research approach by the authors. Results The authors of the research work have presented result section in a well-described manner. The tables that showed the perspectives of the participants have been explained properly. The feedback of the respondents from the different organizations, Americans Changing Lives (ACL) and Midlife in the United States (MIDUS) are mentioned separately in the result sections. The authors are able to show that the variations of the mindsets of the people from the different organizations. However, they are also able to show the similarity among the feedback of the respondents from the different organizations. Discussion As the there are no research questions or theoretical framework presented in the research work, hence there was no linkage in the discussion section of the project. However, the authors have linked the hypotheses that have been considered in the initial stage of the research have been discussed in the discussion part of the research work. In addition to this, the authors of the present research have linked with the findings with the research works that have been done by other authors. The authors have pointed out that the results of the present research work is consistent with the work that have been done by Heaney and other authors with Michigan auto workers in the year 1994 and Ferrie and other authors with British civil servants in the year 2002. Limitations The limitations of the research are not mentioned separately and are mentioned in the discussion section of the research work. Limitations are a part of the research work so that the future authors are able to get an idea about the areas that not have been covered in the present research.. However, the authors have pointed out that the exact health status of the workers of all the areas could not be covered in the present research work, which is the main limitation of the research work. The result of the research can be entirely different if the authors have taken into consideration other factors to carry out the work. In addition to this, they have taken into consideration certain age group to do the research work. The result of the research can be completely different if any other age group is taken into account to complete the research work. Conclusion The authors have recommend that the present situation of the lives of the workers could be made better once the demographic conditions are changed. In addition to this, the change in the characteristic of the job could help in lessening the job security of the workers in the United States. Here also the authors have not made any separate heading for the recommendations. It would have been better if the parts of the research were mentioned separately rather than mentioning them under one heading. The researchers have found it easier to relate to the perspectives of the researchers of the study.

Napoleon and the French Revolution free essay sample

An examination of the influence of Napoleon Bonaparte on the social and institutional changes that arose from the French Revolution. The paper argues that a fundamental shift to a more i just society, with a bureaucratic and rational culture, and a country with less oppression and more individual freedom and opportunity is what evolved out of the work of the first French revolutionaries, such as Napoleon Bonaparte. Napoleon did much to promote and advance the wide-ranging social, economic, and cultural changes that arose from the French Revolution, and it is this legacy and its completion by Bonaparte that this essay focuses on. The principles are divided into several areas: religious, legal, educational, and economic, as well as comments on the institution of the military. In addition, the seizure and sale of church lands was finally declared irrevocable and purchases of biens nationaux were guaranteed to the new property owners. The Church would never regain its unearned wealth and economic power. We will write a custom essay sample on Napoleon and the French Revolution or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page To put it simply, under the Concordat the Catholic Church was no longer an independent corporation within the state, but a body of salaried state servants dependent on the government.

Process Essay Example

Process Essay Romance14 October 2010 Sneaking Out Most teenagers know that sneaking out is key when it comes to the end of the week especially since parents are getting stricter and grounding a lot more. On the weekends, teenagers hang loose, party, relax, and just try to have fun, unfortunately, most parents do not understand. Teenager’s number one goal is to not get caught, therefore hey put a lot of thought in to this process. Even though most of the time teens do get caught in the act, every teenager should know at least one way of sneaking out of the house. Every teenager should know at least one way of sneaking out of the house. Teens put a lot of thought in to sneaking out, they must consider their area situation, disciese themselves, take chances, and be prepared. Most importantly is sneaking back in. As teens put a lot of thought into sneaking out, their number one goal is to not get caught. First, the teen needs to have an emergency excuse ready, in case the teen does get caught. Second, they must remember what time they’re parents usually go to bed, or if they have to stay up late to finish some paperwork etc. Teenagers should remember two important things before sneaking out. One, they need to stuff soft, bulky items, such as stuffed animals, clothes, etc. under their covers to show that the teen is safe and sound in bed. Two, if they do sneak out at night and leave a door or window unlocked, you leave they’re parents home vulnerable to a home-invasion robbery/break-in. The lives of they’re family could be in jeopardy. Anyway, let’s say they’re parents are sound aslee p. The first step would be figuring out how the teenager would get out of their room. An important factor in getting out of the room would be where the room even is, whether it’s downstairs, upstairs or on the main floor. If the room is upstairs, you either would go out the window with a roof, or a tree to climb down. We will write a custom essay sample on Process specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Process specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Process specifically for you FOR ONLY $16.38 $13.9/page Hire Writer They could also go down the stairs and to one of the doors. It’s easier to go out the window, but noise is key. The teen can’t wake up their parents, or any of their siblings in order not to get caught. If the room is downstairs, then its as easy as going out the front door, though sometimes parents have a security system installed in case of a break in, or to even prevent teens in sneaking out. The teen could also go out another door, like the back. Say the parents do have a security system; the teen has no choice but to go out a window carefully and quietly. The teen needs to make sure and have a friend meet them down the block so the lights of the car in the drive way doesn’t bother the parents, and gets the teen caught. After getting out of the house, getting back in is also very tricky, and most important. In order to complete a mission in sneaking out, the teen must get out and get back in without getting caught, that’s the point. After the teen feels successful in getting out, they go out and have fun. When they arrive back home,they need to come in the same way they got out. If the teen came out the window, they should have cracked it and left it semi-open to re-enter the home. If there is any light on in the house, and the teen is sure that they have gotten caught, they need to call home immediately and used their emergency excuse for a cover up. If not, the teen would re- enter the home through the middle floor window in this case. Once the teen is back in his or her room, they must clean up anything that may put them in jeopardy in getting caught. The teen needs to get in bed, and go straight to sleep. If the teen would want to wash their face, take a shower, etc. , they may get themselves caught, so the recommendation for that would be not to do it. Finally, the teen makes it home, safe and sound without getting caught. Most teenagers know that sneaking out is key when it comes to the end of the week especially since parents are getting stricter and grounding a lot more. On the weekends, teenagers like to just have fun and stay out with their other friends, unfortunately, most parents do not understand this concept. Teenager’s number one goal is to not get caught; therefore they put a lot of thought in to this process. Most teens do get caught, but every American teenager should know at least one way of sneaking out of their house.

What is an Anti-Hero Definition †Plus 10 Examples!

What is an Antis! What is an Antis! There’s something comforting about a protagonist who always does the right thing for the right reasons, like Superman. But there’s something compelling about a morally ambivalent protagonist who sometimes does the right thing, and only sometimes for the right reasons - like Tyrion Lannister.While Superman is a traditional take on a heroic protagonist, Tyrion is a decidedly skewed version. In other words, he’s an anti-hero.Let’s dig a little deeper into exactly what an anti-hero is, and why they’ve become so prevalent in stories. Learn all about the morally grey protagonists that readers love: the anti-hero Anti-Hero DefinitionAn anti-hero is a protagonist who lacks some of the conventional attributes of a traditional hero - like courage or morality. While their actions are ultimately noble, they don’t always act for the right reasons.For instance, they might save someone from a dangerous situation because it furthers their interests, not because they actually care about helping others.How is an anti-hero different from an anti-villain?While the two types of characters can be easily confused, the difference boils down to this:The anti-hero (or AH) does the right thing, but maybe not for the right reasons - and they lack a lot of the characteristics we’ve come to expect of tradition heroes.The anti-villain (or AV) does the wrong thing, but their motives are often noble - or, at least, sympathetic. Anti-villains typically have some characteristics we don’t commonly associate withâ€Å"bad guys.†At the end of the day, if you’re not quite sure whether a character is an anti-hero or an anti-villain, ask yourself this: who does the story ask readers to root for? If that character is morally grey, they’re likely the anti-hero. The morally grey character who opposes them is probably the anti-villain.Check out our post full of anti-villain examples to learn more.How is an anti-hero different from a villain-protagonist?Few books have been successfully written from the perspective of a completely irredeemable, morally reprehensible character. Readers want to be able to root for the protagonist at least a little bit. Exceptions include Humbert Humbert from Lolita, Patrick Bateman from American Psycho, and Tom Ripley from The Talented Mr. Ripley. By the end of these books, you’re likely waiting on tenterhooks for the protagonist to be brought to justice.These characters are classified as â€Å"Villain Protagonists.† They’re different from anti-heroes because the author purposefully avoids giving readers a reason to cheer for them. An anti-hero is a morally grey character we’re still encouraged to root for. But a villain protagonist is a â€Å"bad guy†- who happens to be the main character in the story.5 Types of Anti-HeroesNot all anti-heroes are created equally. In fact, TV Tropes classifies a â€Å"sliding scale† of these morally ambiguous protagonists. Unsurprisingly, the first type is†¦1. The Classic Anti-HeroTypical qualities of a fictional hero include confidence, bravery, stoicism, intelligence, handsome looks, and superb fighting capabilities. The Classic Anti-Hero is the inverse of these things: self-doubting, fearful, anxious, and lacking in combat skills. In general, the character arc of this AH follows them overcoming their â€Å"weaknesses† in order to vanquish the enemy.This type of AH is not necessarily on the grey scale of morality, they simply defy readers’ preconceived notions of heroism. id=attachment_18919 style="width: 1290px" class="wp-caption aligncenter">Olivia Pope from Scandal, V from V for Vendetta, Deadpool, Dexter, Nancy Botwin from Weeds, Arthur Dent from The Hitchhiker's Guide to the Galaxy, Selina Meyer from Veep - once you know what an anti-hero is, there is no shortage of opportunities to spot them.If you’re looking to write your own controvertible protagonist, check out the following in-depth blog posts aimed at helping authors develop compelling characters.Character Development: How to Write Characters Your Readers Won't Forget 9 Common Types of Fantasy Characters (With Examples) How to Write a Compelling Character Arc 12 Character Archetypes Every Writer Should Know How to Create a Character Profile: the Ultimate Guide (with Template)Did we miss any anti-heroes who deserve a mention? Drop their name - or any other thoughts or questions - in the comments below!

A Random Walk Down Wall Street Book Analysis

A Random Walk Down Wall Street Book Analysis A Random Walk Down Wall Street Book Analysis Essay A Random Walk Down Wall Street Book Analysis Essay The book A Random Walk Down Wall Street offers an insight into stock investment with the author aiming at providing an appropriate advice for investors. The book has had ten editions since it was first published in 1973 by Burton G. Malkiel. The author’s main idea is to portray markets as partly efficient and to prove that investors can make appropriate individual investment decisions without the indulgence of financial experts. A Random Walk Down Wall Street Literary Analysis According to the author, the basic secret of investing is committing to stock investment in the long term or diversifying investments in case of short-term investments. The author justifies his assertions by using historical testimonies and expounding on them by using personal experiences. The book has four sections with respective chapters that elaborate on various concepts of investing. The book report will provide the author’s main idea and the insights gained. An analysis will show that Malkiel’s book offers an avenue that allows investors to make sound investment decisions by balancing their investment expectations with options available to them. Part One: Stocks and their Value This part entails the first four chapters that introduce the reader to the world of investments. The part mainly discusses concepts of asset valuation by using theoretical foundations. The author mainly uses the firm-foundation theory and the castle-in-the-air theory to expound on asset valuation. The first chapter is â€Å"Firm Foundations and Castles in the Air† and it offers an introduction to investments. It explains that the firm foundation theory argues that an investor should make investments on the basis of the actual value of the proposed investment. The author uses a real-life example that a person wishing to invest in Coke should base the investment decision on the product’s parent company, the Coca-Cola Corporation. The castle-in-the-air theory asserts that an investor should make investments as a response to actions of the masses. For this reason, the theory argues that an investor usually makes more returns by following the majority who invests based on cu rrent trends or based on the foundations of a firm. The chapter concludes that both theories are right in different investment situations. The explanations of the author of the two theories offer a background for the author to critique them in the following chapters. The second chapter â€Å"The Madness of Crowds† explains historical financial occurrences that prove that actions of the masses have significant investment repercussions. Examples of such occurrences include the Tulip-Bulb Craze, the South Sea Bubble, and the tulipomania. In the three instances, the market expanded in a speedy way and led to the overvaluation of assets. After some time, values of the assets returned to their normal valuation after one or a couple of years. A graphical analysis of the three instances showed that by the end of the overvaluation hype the values of the assets returned to the same values as before the hype. The chapter portrays that investors who just follow the masses blindly tend to lose heavily in the market. The inability of investors to resist the urge of the masses makes them vulnerable to adversities of the market. Chapter three explains the stock valuation between the 1960s and the 1990s. The chapter offers a continuation of the craze that the market experiences. The author uses various examples in the stock market to expound on the modern version of the extremity of markets. He expounds on the multiples of price earnings that formed the base of stock trading at the time. The author also expounds on the roles of underwriters in the issuance of new securities, especially their roles in misleading investors. The misleading happened despite investors having access to the guidelines offered by the United States Securities and Exchange Commission. For instance, the stocks in the 1980s were overvalued. The scenario confirms the assertion of the author in the second chapter that such situations continue to recur. Another example offered by the author is the obsession of investors with blue chip companies in the 1970s. By 1980, the values of the stocks had returned to their normal prices. The cases sh ow how firms often manipulate information to increase their value so that they can attract investors. The author concludes that manipulation is inevitable because even though organizations such as the SEC provide the guidelines, they can do nothing to prevent investors from parting with their money. By offering real examples and enlightening historical occurrences, the author remains authoritative and ensures that the reader grasps the real impacts of the masses in making investment decisions. Chapter four explains the internet bubble that sufficed in the late 1990s. The author argues that the public’s obsession with the internet was fuelled by other bubbles similar to the historical ones covered in the previous chapters. For instance, the author cited the IPO mania that prompted the bubble in the 1960s. Similar instances could be seen in the internet era. The main message of the author is that people tend not to learn from past experiences. After the rise of the internet, small investors gained a platform for investments and firms gained a platform for competing with larger firms. Moreover, people became more interconnected. Due to the excitement of the availability of a new platform of trading, people engaged in stock trading by the use of brokerage firms. As a result of overcrowding, people lost money due to the eventual overvaluation and the return to normal prices. In fact, only brokers benefited. This part highlights significant historical influences of the mass mentality on investments. The main point of the author is that markets remain perfect. The assertion means that even if an imperfection comes up, the market will find a way to go back to its normal status. One of the pieces of advice one gets from the part is that investors need to combine both their intellect and curiosity to succeed in investments. The influence of crown activities was also enlightening. The provision of historical examples that led to the overvaluation of assets enables the reader to grasp the author’s main idea. The examples show that an emotional approach without much consideration towards stock investments can be detrimental for investors in the long run. One of the interesting insights from the examples that the author offers is that investors never seemed to learn. All through the 1960s to the late 1990s, economic bubbles would always recur. There would be some hype created that would i n turn entice people to spend more money on stocks. The hype occurred even after authorities such as the SEC warned investors. The above cases remind me of the 2007/2008 economic depression. The scenario was caused by a similar bubble, only that this time it was a housing bubble. The decade ending in 2006 saw prices of houses drastically rise, thus prompting homeowners to refinance their homes due to the availability of adjustable-rate mortgages extended by lenders. Due to the availability of mortgages, people could access loans at interest rates lower than market rates. However, after 2006 people could not refinance their loans because house prices started falling and interest rates rose at the same time. In effect, financial institutions could not recover their loans extended. The situation kick-started the depression that had adverse effects on investors. The situation in 2007/2008 shows that the market has not yet learned about adverse impacts of following the multitude blindly. Part Two: How the Pros Play the Biggest Game in Town This part makes up the next three chapters. The chapters mainly deal with fundamental and technical analysis techniques. Chapter five tries to expound on the extent of the efficiency of the market. It focuses on the elaboration of the technical and fundamental analysis of financial markets. Technical analysis entails studying trends in market prices of assets and then applying historical trends to predict their future prices. The method uses tools such as trend lines and charts. Fundamental analysis entails analysis of the condition of a business by examining its financial records, the market in which the business operates, and the competition. The chapter does not go into much detail about the theories with the next three chapters serving this purpose. The sixth chapter expounds on the technical analysis concept. The author asserts that technical analysis concentrates on identifying correlations. For this reason, the author seems to discredit the technique by arguing that testing the data of stock prices over time does not necessarily lead to the correct prediction of the stock prices. The author cites that the above aspect of the technique makes it spurious. He even uses a humorous example of finding a correlation in the average hemline length in fashion. He uses the example to explain that looking solely at the charts robs off one’s opportunity to see the broader picture, meaning that there would be a high probability of poor judgment. The author also touches on the random walk theory and states that the theory employs random measures to process random data. He goes on to compare the theory with a humorous example of the use of coin flips to determine future prices of stocks. The author uses more humorous examples to disre gard the theory and the technical analysis because of the theory limitation. Chapter seven concentrates on the fundamental analysis concept. Malkiel seems to support the fundamental analysis. The support, as he argues, arises because the concept bases itself on logical judgment when admitting data for consideration. Another reason the author prefers the fundamental analysis is that the technical analysis only focuses on the stock price, while the fundamental analysis focuses on the worth of the stock. Despite the support for the theory, the author finds it weak as well. The author provides situations where fundamental analysis can have flaws. The examples include random events such as the 9/11 attacks, the consideration of flawed data from firms, and poor analysis. The author also asserts that financial experts are no better than investors. He states that they only have an edge because they can access more information from companies. The author’s information on stock valuation is very insightful. Although I had some knowledge of the two techniques of stock valuation, I had not deeply analyzed them to an extent of identifying their weaknesses. However, the author’s argument convinced me of the flaws of the systems. I enjoyed humorous examples offered because it was a light way of learning about the techniques. The part of the book also offers a lot of lessons when it comes to stock trading. The first lesson is that one should purchase stocks if their expected growth of earnings is above the market average. Moreover, prospected growth should entail a period of more than five years. The second lesson is that it is too risky to purchase multiple stocks whose prospected future growth has been discounted. The last and the most significant lesson is that an investor should consider whether an asset possesses the likelihood of attracting masses to invest in them. The last lesson means that logic is the key when considering a stock purchase. Another interesting conclusion from the understanding is that I have come to question the roles of financial advisors in aiding investors making investment decisions. The author cites that the only difference between them and investors is that they have more information. Prior to reading the book, I viewed experts as a haven and the best avenue for investors to make right investment decisions. After reading this part of the book, I realized that experts might not be significantly different from investors. I find great sense in the claim because some of the historical bubbles came up since investors had more trust in experts than in the authorities. However, despite gaining the knowledge, I partly disagree with the author’s claim because the fa ct that experts have needed information means that they are in a better position to make sound decisions. Part 3: The New Investment Technology This part entails the next three chapters of the book. The section concentrates on the modern portfolio theory that entails combining assets with different risk levels to create a positive returns diversified portfolio. Harry Markowitz came up with the theory in the 1950s, making him win the 1990 Nobel Prize. Chapter eight introduces the modern portfolio theory by asserting that it is essential for investors to diverse their investments and at the same time minimize their risks to obtain positive returns. According to the author, the risk of an asset is a significant determinant of the nature of returns. It is worth noting that the standard deviation of the stock is usually the measure of risks. The author cites that risks are inevitable irrespective of the nature of diversification. The argument of the author portrays that he partly agrees with the theory. Chapter nine expounds on the theory by explaining ideas highlighted in chapter eight. The outstanding addition to the previous chapter’s ideas is introduction of the beta factor. The author introduces the factor while explaining the Capital Asset Pricing Model (CAPM). On the basis of the model, the author argues that investors should avoid diversifiable risks because they do not have premiums. The author also argues that an investor should attain more returns by investing in high-risk assets. However, the risk should be systematic. The premium aspect leads to the introduction of the beta factor. The author explains that the beta factor explains how a stock behaves in the stock market. Specifically, it measures volatility of an asset as compared to the whole market. On the one hand, theoretical application indicates that the price of a stock with a higher beta value will rise at a higher rate than other stocks in case of a bull period. On the other hand, its price will decrease at a higher rate in case of a bear market. However, after introducing the beta concept, the author takes an unprecedented stand by claiming that beta is not a sufficient measure of the relationship between the risk and returns. Chapter ten introduces the concept of behavioral finance. The concept entails application of human cognitive and emotional concepts in making investment decisions. The author argues that behavioral traits such as being overconfident and overreacting often have an influence on investors’ decisions. After explaining the concept, the author concludes that most choices based on personal biases do not reap intended rewards in the long run. Malkiel argues that the common sense aspect of personal biases has a chance of providing a logical judgment on investments that may prove fruitful. Some of the common sense ideas include inner motivation of investors to resist investing in pricey assets in the long run and the desire to avoid overtrading. Another possible aspect of common sense is that an investor should only get rid of stocks that portray a trend of losing value. Chapter eleven entails the author providing a summary of his opinions given in previous chapters. Some of the assertions include that the market is fairly efficient and in most instances corrects discrepancies when they occur. The main attraction point is the author’s use of Benjamin Graham’s argument that investors should always invest in the long-term value stocks. The author does not seem to endorse the Graham’s argument and he goes to the extent of justifying his position. He asserts that in the long run the trends of growth and value stocks do not run parallel to market trends. However, he partly endorses the Graham’s argument by stating that value stocks often tend to perform better during extremities such as bubble and economic depression. After reading the part, I gained more information on the importance of beta. However, after the author providing a lot of information about its importance in determining the risk of an investment, it was surprising for the author to disagree with the beta factor. The author argues that particular differences in the stocks make beta more ineffective. Despite the surprise, I appreciated his insight because it provided a platform for me to read more about the relationship between beta and risk and returns. On the concept of behavioral finance, I have come across real applications of the author’s argument that personal biases affect individual investment decisions. The inner thought that there is an opportunity to make money can urge an individual to make rash decisions. Moreover, the thought of a possible loss can influence similar decisions. The significance of personal biases in investing has led to the creation of various notions in the modern investment world. Some investors have the tendency to disregard the efficient market hypothesis and endorse unproven beliefs. An example is the January effect when people tended to think that stocks perform well in January. Despite their unproven status, beliefs may make an investor invest heavily during the month. In effect, such an investor may end up experiencing losses. Part Four: A Practical Guide for Random Walkers and Other Investors This part aims at giving the reader an insight into the practical side of investing. The part also offers advice to investors by affording them strategies that they can use to choose their investment portfolio. Chapter twelve offers investors advice on how to start an investment venture. The author encourages stock investors to ensure that they have emergency funds available in case their investment decisions lead to losses. Moreover, the author argues that investors should consider investing in â€Å"insurance† investments such as bonds and real estate investments. He argues that ordinary shares and real estate investments provide a viable option for investment. He concludes with the assertion that prior research is vital for investors in coming up with the best portfolio. Chapter thirteen mainly deals with the author’s opinion on the better choice between stocks and bonds. The author argues that an investor should not entirely rely on the past performance of a stock to predict its future performance. However, he states that the past performance partially influences its future value. The author believes that investing in stock in the long run offers more returns than in bonds due to the elimination of risks. Moreover, he asserts that investing in stocks in the long run may provide the needed safety to fight inflation. However, Malkiel insists that the period cannot be shorter than a decade. He states that a shorter period than a decade is too random and investors do not have a choice but to invest in risky stocks. The assertion means that investors who intend to venture into the short-term investments have to choose between risks and adopt the one that they feel comfortable to carry. Chapter fourteen entails the author insisting that investors willing to commit their resources for more than a decade should commit themselves to stocks. He also insists that it would be better for short-term investors to concentrate on a diversified portfolio that include bonds. The author also advises short-term investors to consider retaining some of their resources as cash to cover any case of emergency. The chapter offers guidance on how investors can approach the market. Despite offering the above options, Malkiel encourages investors to venture into long-term investments. He advises investors to consider venturing into long-term stocks as a way of saving a retirement fund. Chapter fifteen is the last one in the section and the entire book. Apart from providing a summary of the book, it goes into the specifics of investing. The author argues that an investor does not have to perform an extremely detailed analysis to make an investment analysis. Instead, the author encourages investors to venture into an index fund. He encourages investors intending to purchase individual stocks to venture for the long term instead of trading them. Moreover, he asserts that investors should concentrate on stocks that have a record of good performance. Concerning managed funds, the author has reservations about them. He asserts that they may not be an advisable option because they may have misleading information. The also advises investors to purchase stocks that create positive stories about their potential to improve their value. After reading the last part of the book, I came to get the picture of intentions of the author. The first intention is to prove that the market efficiency hypothesis offers a realistic guidance in the stock market. The second aim was to reconcile market efficiency and perceptions of the market towards economic bubbles. The last aim of the author was to identify various ways of analyzing the stock market, highlight their weaknesses, and apply lessons from their weaknesses in offering investment advice to investors. The fourth part culminates his aims by combining strengths of different investments theories and techniques and avoiding their weaknesses to come up with a hybrid investment decision-making guideline. In conclusion, investors ought to read the Malkiel’s text. The book is organized in well-thought sections that cover aspects that entail financing progressively. Reading all the parts enriches a reader with information necessary in making appropriate investment decisions. The author came up with investment theories and techniques and highlighted their roles in investments. He aimed at offering the best financial advice. It is undeniable that the author believes in a partly efficient market and he justifies it by giving out real-life historical examples. The book has a lot of lessons for all investors. The main lesson is that an investor should have the courage to make investment decisions instead of relying solely on financial experts. Moreover, investors should apply logic in the decision-making. With the author analyzing crucial investment theories and concepts and then offering their critique, his aim is to communicate that none of them is efficient. For this reason, a hybrid way of the approach that entails picking strengths of the theories and techniques would be the preferable way to approach investments. Personally, I have learned that caution is the key to approaching investments. Moreover, I have learned that over-ambition or moving along with the crowds can be detrimental in some instances. I have also learned that having long-term investments is a preferable way of saving in the long run. The book also teaches that if an investor chooses to invest for a short-term period of fewer than ten years risks are inevitable. For this reason, diversification is the key. Due to the above lessons, investors, whether they believe in the efficiency or the market or not, need to read the book to expand their investment knowledge.